QUEZON CITY UNIVERSITY

Chatime
A CASE ANALYSIS
Presented to the Faculty of Quezon City University
College of Business Entrepreneurship
San Bartolome, Novaliches Quezon City

In Partial Fulfillment of the Requirements for the

Subject Franchising

By:

DEPLOMO,IRENEO
Submitted to :

LORNA SUYAT

SEPTEMBER 2022
TABLE OF CONTENTS

I. Introduction 3
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A. Environment
B. Industry 4
C. Competitor 6
D. Product 7
E. Geographical Information 8
F. Income Statement 9
G. Organizational chart 10
H. SWOT Analysis 11
I. Advertising 12
II. Problem Analysis 13
III. Alternatives 14
IV. Decision and Implementation 15
V. Conclusion 16
References 17

I. Introduction

Chatime is a Taiwanese franchise that was created in 2005 and

now has over800 retail locations in Taiwan, Malaysia, China, India, Macau,

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Vietnam, Singapore, HongKong, Thailand, Korea, Philippines, Indonesia,
Australia, Dubai, Vietnam, Canada, UK,and the United States. Chatime
Malaysia, as one of the world's leading beverage brands, aspires to
be the most loved beverage by transforming the country's
teadrin kin g cul tu re . Mala ysia ns were fi rst in trodu ced to the ta ste o f
fre shl y brewed beverages in October 2010. Chatime Malaysia only
serves handcrafted beveragesmade from freshly brewed tea manufactured
on-site.By Chatime's action plan in combining over 30 years of tea
manufacturingexpertise and experience from a team of professional
researchers, the tea drinking culture is now beginning to experience an
exciting shift - consumers are no longer satisfied with teas laden with
artificial ingredients and flavors - they want something realand flavorful. Chatime
Malaysia employs only the best imported tea leaves and qualitying red ien ts,
fre e of pre se rva ti ve s, to tran sform th e tea-dri nki ng scene .
Cha ti me combines concepts from leading Japanese tea makers and takes cues
from their qualitycontrol and design concepts to keep customers coming
back. Every cup of tea is nowfreshly prepared to order. Chatime
Malaysia will continue to provide high-quality beverages and promote a
modern tea culture in Malaysia, in keeping with the brand's promise and
dedication.In March 2014, after four years in the F&B retail market,

In March 2014, after four years in the F&B retail market, Chatime Malaysia
wasnamed the Largest Pearl Milk Tea Beverage Chain in Malaysia, with 115
stores. Bubbletea enthusiasts in Malaysia have demonstrated their passion
for the beverage andloyalty for the business, establishing Malaysia as the
fastest growing Chatime country.To this day, Chatime is recognized as the
world's first and only publicly traded bubbletea firm, giving its success back
to its customers via high-quality drinks and services.

I. Case Analysis Framework

Current Situation
A. Environment
The Gardenia is associated with the qualities such as good taste, freshness,
and reliability. It is a highly competitive in the market, these are the advantages
of the Gardenia Philippine to stand out and stay ahead. The tradition of American
recipe that has been tried all over the generation and the improvements have
been made to the scope of recipe and their method of processing and the most
important is their automation. Gardenia ensure that the taste, aroma and the
good qualities of the bread is consistently being maintained until for next
generation. Despite of a competitive environment. Gardenia has remained as a
market leader until now, and making sure that the product are constantly cut

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above the rest. Gardenia Philippines is a food branded company is and their
trademark means value and respected all over the years.

B. Industry

Technology

According to the Gardenia Philippines’ president and manager Simplicio

Umali, they applied the best technologies on the new production line. “There are
improved systems and technologies in the makeup, proofing and automated
handling process that will help produce high quality breads,” explained that the
slicers are more accurate. The facilities also include a tumbler where all four
sides of the loaf are checked, while a tornado cleaner ensures that all baking
pans are very clean and free of crumbs.

The new plant located at Laguna International Industrial Park in Biñan, Laguna
features   additional robotics and the latest available technology in modern
baking which came from the best baking suppliers from all over the world such as
Germany, the Netherlands, United States and Japan. Breads from Gardenia are
“completely untouched by human hands,” with the whole plant computer-
controlled starting from  ingredient handling and makeup systems, the use of
robotics in handling baking pans and a unique technology in the de-panning
process which promises to be gentler to the bread.

According to the management that the new plant will be Gardenia’s second
largest facility, is into in Laguna plant. “This new factory has a white loaf
production line, a flavored loaf line, a bun and pandesal line and a snack toast
line. With these four new production lines, the Pampanga factory will be able to
produce nearly 400,000 loaves and buns every day ready for delivery to
supermarkets, groceries and convenience stores,”

Socio cultural influence in society and culture that brings about people’s belief,
custom, lifestyle and many more. For the bigger market and more profit,
Gardenia forced to produce a HALAL certificate product to the Malay and Muslim
customer. Due to reason of Malay and Muslim culture is cannot eat pork and
consume alcohol. So Gardenia put the HALAL logo on every product. Malay and
Muslim will buy a product with a HALAL logo with any hesitation. Gardenia can
earn profit and plan for future market by complying HALAL on their product with
open market especially to Muslim community consumer.

At Gardenia, a special Halal Committee is formed to scrutinise every aspect of

the Halal regulations and to ensure that all requirements are stringently adhered.
As an added measure to control and safeguard our status, we have appointed an

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Independent Syariah Advisor whom Gardenia could refer to in “syariah” related
matters.

HR policies allow an organization to be clear with employees on:

 The nature of the organization

 What they should expect from the organization
 What the organization expects of them.
 How policies and procedures work.
 What is acceptable and unacceptable behavior.
 The consequences of unacceptable behavior

HR policies provided the organization with a mechanism to manage risk by

staying up to date with current trends in employment standards and legislation.
The policies must be framed in a manner that the companies vision & the human
resource helping the company to achieve it or work towards it are at all levels
benefited and at the same time not deviated from their main objective.

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Competitor

There are many competitors that compete along with Gardenia Bakeries such
as Mighty White, and Massimo. We all know that gardenia is one of well
known brand of bread, there are many competitor that doing a same
product, same in quality, taste and the feature.

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Based on the research of Gardenia that, in the 10 different places, they found out
that the price of Gardenia white bread are standard. The price of Gardenia white
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bread all are selling at the same price RM2 because the Gardenia Bakery since
they’re starting has no price discrimination. Price discrimination is sellers charge
different price to different consumers for the same good or service when the cost
of providing that good or service does not differ among customers. Besides that,
Gardenia white bread is not separate selling to different classes. Even the
customer income are low or high it doesn’t matter because Gardenia white bread
are easily to buy since it is under of monopolistic competition market. Gardenia
spend a lot of money regarding their advertisement to convince the customer to
encourage them to buy.

The gardenia bread it contains 38% less carbohydrates, 7. 3x more dietary fibre,
15 % less calories, 59% more proteins, low gylcaemic index (42), low gylcaemic
load (6. 5), prebiotic properties, low fat, no trans fat and no added sugar. The
price of Gardenia breads is low and almost the same as others competitors.
Actually the pricing of Gardenia bread is controlled by the government .

Geographical Information

In the table showed that it is a outcome of the global production in south east
asia gardenia company businesses. It is a global production where converting
the resources from all over the world into good and services. This resources
including materials, employees time and technology.

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ORGANIZATIONAL CHART

The figure above shows the organizational chart of gardenia Philippines.

Including here the principal consulting engineer until the technical assistance.

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Firm

SWOT ANALYSIS

STRENGTHS WEAKNESS

 The quality of the product  Increases the expenses of the

( freshness and taste) materials

 Multi awarded company  Decreasing of the interest of

the organic food.
 Top line when it comes in
production  It is only distribute in
. wholesaler or retailers
 High marketing strategies  Poor customer services

 A well known brand in the

industry
OPPORTUNITY THREATHS
 Bargaining of the suppliers
 Rapidly Growing of the
economy and rising a middle  Changing the preferences of
class the customer

 Improvement on market  Changing the government

coverage and distribution regulation

 Promoting a healthy lifestyle  New product that can

substitute of gardenia bread
 Gain customer loyalty  Global economic crisis

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The gardenia has used advertising strategies to promote their product through
television, radio, event, and newspaper where they can get the attention of the
customer. And to promote also the new existing product in the market. The
mostly used when it comes in advertising are the media , television and the news
paper.

But the major advertisement of gardenia bread is “ it’s fresh! It’s good! So
good.. you can even eat it on its own ! .

Vision

Our vision is to become the premier company in the baking industry and the
related food and beverage industry, known and emulated for our best quality
products that delight the consumer. It is the pride of every employee, investor,
trade partner and stakeholder.

Mission

Our mission is to serve consumers with the best quality assortment of great-
tasting bakery and related food and beverage products, with world-class
manufacturing facilities and an efficient nationwide distribution network, thereby
providing a fair return on shareholder investments

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Objectives

The group believes that Gardenia Bakeries’ objective should be expansionary,

given its current standing in the market. A market leader can maintain, grow and
protect its position in the market by employing strategies focused on the
following: (a) acquire new customers, (b) encourage more frequent usage, and
(c) find new uses of product.

II. PROBLEM ANALYSIS

A. Primary Problem

 How the Gardenia maintain the top producing of bread in industry despite of
the competitors that exist in the market.

Symptoms : Gardenia is a well known brand.

Proof : gardenia ensure that the quality of their product is will be the same.

B. Secondary Problem

 How the Gardenia handle the fake issues about the spreading the
news that all the employees are affected of corona virus.

Symptoms : there is in social media spread out that,  “Dont eat muna
gardenia lahat tao positive… buong planta sa laguna positive lahat ng tao”.

Proof : The management clarify that it is all fake news. Beacuse the safety of
employees is their top priority. The gardenia implementing strict precautionary
measures, safety and health protocol to protect all employees.

 How the Gardenia descipline their employee, since there has a video
that their employee stealing a bread.

Symptoms: there is a video in social media that one of the employee of

gardenia stealing a bread.

Proof : The Gardenia investigate the incident and taking a necessary steps
and measures so that it will not happen this at the near future.

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III. Alternatives

A. Improve the newest technology when it comes in production

Advantages
 Easily to produce a product
 It's efficient to use a modern technology to ensure the good quality of the
product

Disadvantages
 it will affect the price of the product
 It's expensive
 Decreasing the rate of the labor

B. Gardenia should have a own plantation to their organic food.

Advantages
 They easily to get their own organic food , they do not need to find a lot of
supplier for their materials
 It will decrease the price of the product

Disadvantages
 Another expenses
 There has a tendency that it will destroy in calamity
 Climate change

C. Gardenia should try to franchise to expand their business

Advantages

 it will increase the profit

 Easily to Recognized the trade mark and the brand name
 Established a market share

Disadvantages

 Another expenses
 The cost maybe higher than you expect

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IV . Decision and Implementation

1. GOOD 2. BETTER 3. BEST

CRITERIA Improve the Gardenia should A. Gardenia

newest have a own should try to
technology when plantation to their franchise to
it comes in organic food. expand their
production business

Easiest 3 2 3

Marketing 3 3 3
strategy

Innovating the 3 2 1
process

The condition 3 3 3
of the labor

Recommendation

 Gardenia doing things differently compare to the other company

industry, they have a uniqueness when it comes in producing a product.
Therefore that’s a key why Gardenia still achieving in the market with a high
effects in the consumer.

 A Gardenia has a plan to expand and build a bakery not just in terms
of the premier industry but related to food an beverage industries. And
also conducting s product development to sell in the market.

 Product development helps the gardenia to keep up changing the

consumer demands even without the media advertising company still able
to reach the costumer. One of their strategy is the packaging they have
and the way how they distributed the product on the market

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V. Conclusion

Gardenia focusing the fulfillment of the customer to provide their needs and
giving their best to provide a daily bread and have more delivery channel such as
, different store, market, supermarket and grocery. Through offering a product the
gardenia hoping a higher sales even in the positioning in the market segment
against to their competitors. The tag line of their product is “ so good. You can
even eat it on its own”. Not only because of the image of the product that’s why
gardenia still the top of the market but because the nutrients we get in the bread.
The gardenia valued the preferences of the customer. They offer affordable
price. The company ensures that the bred are baked daily and it should be
distributed immediately.

References

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https://annmacapanas.weebly.com/company-industry-
forecast.html

https://manilastandard.net/mobile/article/197590?
fbclid=IwAR0p6Vf3spGk66pkdFfaT9hdUSRwPHbsotEdqjMTWLRZ7
bxz0GsAYOHI33E

https://www.worldbakers.com/businesses/gardenia-
bakeries-opens-fully-automated-plant-in-the-
philippines/?
fbclid=IwAR3gpB_zxlOoW5mhU6bdc8mbVht07MU5KCQDnTdLEVHEu
1qphSYBoqBpqUE

https://graduateway.com/analysis-on-the-price-of-
gardenia-breads/?
fbclid=IwAR1Lt6YHxAWfAAmQofLK_6IStmVqvIWwKoHRrnqU2_BnK
6dIXlYgUJSLM5A

https://testmyprep.com/subject/management/gardenia-
bakeries-philippines-business-analysis?
fbclid=IwAR11wzyYYsQ39KWlGtgHFYt74p4OAevJ4kIH1H4DtvALm
uNMTIkT-sgTp1k

https://phdessay.com/gardenia-marketing-plan/?
fbclid=IwAR2Yt2sd5KlkwNH12r-fd3yxX-d0nckyTlUCxIPqepII-
Ao9AVzknnNmpmA

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